Fitch International Agency will assign a credit rating to Turkmenistan13.07.2021 | 03:25 |
Turkmenistan is completing negotiations with the Fitch Rating Agency, following which the country will be assigned a credit rating that determines the investment grade.
In July last year, Turkmenistan joined the World Trade Organization as an observer. Now work has been launched to bring the legislation of Turkmenistan in line with international requirements and standards, improve the investment climate in the country and create conditions that stimulate investment processes.
The total volume of investments in fixed assets of Turkmenistan at the end of 2020 amounted to over 10 billion US dollars, which is approximately 23% of GDP. Of the total amount of investments, according to the Ministry of Finance and Economy of the country, over 60% was directed to the implementation of projects in the production sector.
The share of foreign investment in the total investment volume is maintained at a high level - about 15%. Today, foreign companies from more than 100 countries carry out investment activities in Turkmenistan. These companies are implementing over one and a half thousand investment projects.
Since 2019, Turkmenistan has switched to international financial reporting standards, which allows foreign investors and national entrepreneurs to more actively integrate and expand partnerships. In addition, it enhances the transparency of financial reporting and performance discipline.
Significant work has been done to form the legal framework for state regulation of investment activities in the country. The legislation of Turkmenistan provides guarantees of full protection of invested capital to foreign investors. The profits of foreign investors after taxes remain at their disposal and can be reinvested in the territory of Turkmenistan or repatriated.
Fitch Ratings is an American corporation known primarily as a rating agency. Fitch Ratings, along with Standard & Poor’s and Moody’s, is included in the “big three” international rating agencies
The main objective is to provide the global credit markets with independent and forward-looking credit ratings, analytical studies and data.